Employees Provident Fund (Nepali:कर्मचारी सञ्चय कोष) Nepal is the
pension
A pension (, from Latin ''pensiō'', "payment") is a fund into which a sum of money is added during an employee's employment years and from which payments are drawn to support the person's retirement from work in the form of periodic payments ...
fund/provident fund for
employee
Employment is a relationship between two parties regulating the provision of paid labour services. Usually based on a contract, one party, the employer, which might be a corporation, a not-for-profit organization, a co-operative, or any ot ...
s of
government
A government is the system or group of people governing an organized community, generally a state.
In the case of its broad associative definition, government normally consists of legislature, executive, and judiciary. Government i ...
and
private sector
The private sector is the part of the economy, sometimes referred to as the citizen sector, which is owned by private groups, usually as a means of establishment for profit or non profit, rather than being owned by the government.
Employment
The ...
of
Nepal
Nepal (; ne, नेपाल ), formerly the Federal Democratic Republic of Nepal ( ne,
सङ्घीय लोकतान्त्रिक गणतन्त्र नेपाल ), is a landlocked country in South Asia. It is ma ...
. The Fund is currently managing provident funds of 600,000 employees working for the government and in the private sector.
[Employees Provident Fund launches tele-fund]
My Republica The Fund also invests in different sectors like
infrastructure
Infrastructure is the set of facilities and systems that serve a country, city, or other area, and encompasses the services and facilities necessary for its economy, households and firms to function. Infrastructure is composed of public and priv ...
s and
hydroelectricity
Hydroelectricity, or hydroelectric power, is electricity generated from hydropower (water power). Hydropower supplies one sixth of the world's electricity, almost 4500 TWh in 2020, which is more than all other renewable sources combined an ...
. The Fund distributes its profit among depositors.
Employees Provident Fund brings new scheme
The Himalayan Times Currently employees are required to contribute 10% of their basic salary
A salary is a form of periodic payment from an employer to an employee, which may be specified in an employment contract. It is contrasted with piece wages, where each job, hour or other unit is paid separately, rather than on a periodic basis.
F ...
(i.e. excluding bonuses) with an equal contribution from their employer
Employment is a relationship between two parties regulating the provision of paid labour services. Usually based on a contract, one party, the employer, which might be a corporation, a not-for-profit organization, a co-operative, or any o ...
to their provident fund.
History
The history of Provident Fund (PF) in Nepal dates back to 1934 when the PF scheme came into existence with the establishment of Sainik Drabya Kosh (Army Provident Fund) during the Rana Regime.[Employee Provident Fund Nepal's Website]
/ref> The scheme was initiated with the intentions of removing financial hardships to the army personnel after their retirement
Retirement is the withdrawal from one's position or occupation or from one's active working life. A person may also semi-retire by reducing work hours or workload.
Many people choose to retire when they are elderly or incapable of doing their j ...
. Under the scheme, the army staffs were required to contribute a specific percentage of their salary to their provident fund (PF) account in Sainik Drabya Kosh.
A decade later, the scheme was broadened to cover the employees of civil service
The civil service is a collective term for a sector of government composed mainly of career civil servants hired on professional merit rather than appointed or elected, whose institutional tenure typically survives transitions of political leaders ...
s as well. A separate organization named Nijamati Provident Fund was established in 1944 to manage the scheme for civil servants working within Kathmandu
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. In 1948, the coverage of the scheme was extended to provide coverage to the entire civil servants working throughout the kingdom of Nepal.
In 1959, Employees' Provident Fund Department was established under the Ministry of Finance A ministry of finance is a part of the government in most countries that is responsible for matters related to the finance.
Lists of current ministries of finance
Named "Ministry"
* Ministry of Finance (Afghanistan)
* Ministry of Finance and Ec ...
and Economic Affairs. This department was entrusted with the management of both Sainik Drabya Kosh and Nijamati Provident Fund. With this, the scope of the scheme was extended to cover all government employees including the police.
Three years after the establishment of Employees Provident Fund Department, a special Act called "Karmachari Sanchaya Kosh (or Employee's Provident Fund) Act" was legislated in the year 1962. The same year the present Karmachari Sanchaya Kosh (KSK), or Employees Provident Fund (EPF) in English, was established under the act as an autonomous provident fund organization.
After the establishment of EPF, the erstwhile Sainik Drabya Kosh, Nijamati Provident Fund and Provident Fund Department were merged into the EPF.International Social Security Association
The International Social Security Association (ISSA) is an international organization bringing together national social security administrations and agencies. Founded in 1927, the ISSA has more than 330 member organizations in 158 countries. It h ...
) since 1980 A.D.
References
{{Reflist
Sources
karmachari sanchaya kosh
External links
www.epfnepal.com.np Official Website of EPF Nepal
Age pension systems